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Europe

French 2022 finance law includes tax measures affecting MNEs

January 28, 2022

Patrick Donsimoni, La Boetie, discusses tax measures in the 2022 French finance law, published in the French Official Gazette on December 31, 2021, affecting multinational groups that have . . .

Belgium

EU draft directive to tackle “shell entities”: ATAD III or the European Magnificent Seven-step approach

January 28, 2022

Geoffroy Galéa, Alain Thilmany, and Cassandre Guéry, Fieldfisher, discuss the European Commission’s 22 December 2021 publication of the ATAD III directive, which will increase the tax authorities’ attention to the international concept of substance; more than ever, it is crucial for multinational groups to . . .

Europe

Swedish Administrative Court of Appeal did not consider multiple-year data, adjusted the taxable result

January 26, 2022

Emiliha Ferrão, Censio Tax, discusses Sweden’s Administrative Court of Appeal’s November 2021 ruling in favor of the Swedish Tax Authority in a case involving a change of transfer pricing methodology and a restrictive use of multiple-year results to support . . .

OECD transfer pricing guidelines get first update in five years

January 20, 2022

In the new 2022 edition of the OECD’s transfer pricing guidelines released on January 20, the OECD has made three significant additions and revisions to the guidelines for multinational enterprises and tax administrations, reflecting several enhancements developed over . . .

Austria

EU’s path forward on global minimum tax is under debate

January 18, 2022

EU member states are at odds on various issues related to the directive to implement within the EU the global minimum tax portion of the OECD agreement, with several members expressing concerns about key aspects in a January 17 Economic and Financial Affairs Council . . .

Americas

Colombian regulation addresses ultimate beneficial owner report for tax purposes

January 18, 2022

María Helena Padilla, Pinilla, González y Prieto Abogados, discusses the Colombian tax administration’s implementation of a regulation on the registration of the ultimate beneficial owner-report for tax purposes, which entered into force on January 15, and establishes . . .

Belgium

Belgian court rules on application of tax general anti-abuse provision

January 18, 2022

Moïse Gnakouri, Catholic University of Louvain, discusses the Belgian High Court’s two November 25 decisions in tax matters concerning the general anti-abuse provision contained in article 344 of the Belgian Income Tax Code, as applied to . . .

Americas

Poland transfer pricing laws under review to strengthen system against tax evasive behavior

January 14, 2022

Dr. Monika Laskowska, Warsaw School of Economics, discusses the Polish Ministry of Finance’s participation since November in a project coordinated by the European Commission to reform Polish transfer pricing regulations; the project is planned to . . .

Americas

Switzerland will implement global minimum tax by constitutional amendment

January 13, 2022

The Swiss Federal Council on January 12 decided that it will implement the 15% global minimum tax agreed by the OECD Inclusive Framework through a constitutional amendment with an aim to ensure the measure comes into force as of January 1, 2024; the approach is intended to . . .

Asia-Pacific

Australian Taxation Office plans review of advance pricing arrangement program

January 13, 2022

The Australian Taxation Office announced on January 12 that in 2022 it is conducting a review of its advance pricing arrangement (APA) program, focusing on whether the program is assuring transfer pricing risk in the most efficient manner, as well as . . .

Africa

Swiss international tax update addresses OECD deal, treaties, MAP

January 12, 2022

Switzerland’s State Secretariat for International Financial Matters on January 10 issued a report on various ongoing tax projects, including the country’s take on the OECD deal, as well as the status of tax treaty negotiations, tax information exchange, mutual agreement procedure (MAP), and recent . . .

Accounting

UK sets out approach to global minimum tax implementation

January 11, 2022

The UK government on January 11 opened a consultation on how it plans to implement and administer within the UK the OECD model rules on the internationally agreed 15% global minimum tax; the consultation also considers the introduction of a UK domestic minimum tax, as well as . . .

Africa

EU tax transparency directive: When turkeys vote for Christmas

January 10, 2022

Cédric Maheo, CWA Morocco, discusses how the EU directive on public country-by-country reporting for large multinationals, published in the Official Journal of the European Union on December 1, will give tax authorities in the developing world new data on multinationals operating in . . .

Accounting

OECD’s ‘complex’ minimum tax rules have ‘major policy issues,’ BIAC says

January 7, 2022

In a January 6 letter to the OECD, business advisory group Business at OECD (BIAC) criticizes “significant policy inconsistencies” in the OECD’s global minimum tax model rules that it considers “potentially fatal” to their operation; moreover, it contends efforts must be made to . . .

Europe

Italian Revenue Agency provides tax guidance on CFC legislation

January 6, 2022

Giuliana Polacco and Annarita De Carne, Studio Legale Bird & Bird, discuss the Italian Revenue Agency’s December 27 release of two documents clarifying the controlled foreign companies (CFC) legislation; the current version of the CFC legislation has been amended by . . .

Europe

Lithuania amends corporate income tax law

January 6, 2022

Robertas Degesys, TGS Baltic, discusses the Lithuanian parliament’s December 7 adoption of several important amendments to Lithuania’s corporate income tax law, including changes to the additional corporate income tax for banks and credit unions, hybrid rules, and . . .

Europe

Finnish transfer pricing adjustment provision amendments are now in force

January 5, 2022

Marianna Santamala, Bird & Bird Attorneys Ltd, discusses the new amendments to the Finnish transfer pricing adjustment clause included in section 31 of the Finnish Assessment Procedure Act, which came into effect on January 1, 2022, and apply to tax years beginning on . . .

Europe

Dutch government plans amendments to CFC tax and transfer pricing rules

January 4, 2022

Robert Jean Kloprogge and Olivier Elsenburg, Simmons & Simmons LLP, discuss the prospect Dutch coalition government’s December 15 publication of its 2021–2025 agreement, including a plan to adopt recommendations regarding the Dutch controlled foreign company (CFC) rules from . . .

Africa

South Africa to reevaluate R&D tax incentive’s continuation, design

December 30, 2021

The South African National Treasury is seeking input on a discussion document released December 15 reviewing the design, implementation, and impact of its research and development (R&D) tax incentive program to determine if the country’s R&D tax regime, which is slated to sunset . . .

Americas

US final foreign tax credit regulations address outstanding issues

December 29, 2021

On December 28, the US Internal Revenue Service released the latest round of final regulations on the foreign tax credit, further amending the rules in response to the 2017 Tax Cuts and Jobs Act and other issues; the final regulations adopt with some changes proposed regulations published on . . .

Europe

Malta consults on draft transfer pricing rules, APA program

December 29, 2021

The Maltese government on December 20 opened a consultation seeking feedback on draft transfer pricing rules with the intention of using the feedback to craft final transfer pricing rules to be published in late 2022 and then apply the rules to tax years beginning in . . .

Europe

Ireland updates mutual agreement procedure guidelines for tax disputes

December 28, 2021

The Irish Revenue Department on December 23 published updated guidelines for requesting mutual agreement procedure (MAP) assistance for resolving cross-border tax and transfer pricing disputes; the updates incorporate a . . .

Europe

Ireland weighs move to territorial tax system

December 23, 2021

The Irish Department of Finance on December 22 opened a public consultation inviting comments on a possible transition to a territorial tax regime for corporations; such a system “could be simpler and provide greater certainty for businesses — but would also have to be accompanied by . . .

Carbon Tax

EU looks to pull revenue from share of OECD tax deal, environmental measures

December 23, 2021

The European Commission on December 22 proposed three “own resources” for the EU budget, including taking a share of the taxing rights to be reallocated to EU member states under Pillar One of the OECD Inclusive Framework tax deal reached in October; the two other proposed . . .

Americas

Peruvian executive power will modify tax on nonresident entities’ presumed income

December 23, 2021

Gonzalo Escalante, Zegarra Aguilar Abogados, discusses the Peruvian Congress’s December 17 approval of legislation to allow the executive power to modify tax on nonresident entities’ presumed income; the approved version includes several changes from . . .

Americas

Brazilian tax ruling applies most favoured nation clause in tax treaty with Portugal

December 23, 2021

Jack Taylor, University of Minho, discusses the Brazilian tax authorities’ September 22 ruling applying the most favoured nation principle in a case under the Brazil-Portugal double tax agreement, determining that sales of shares or equity by . . .

Cyprus

EU directive sets out approach to global minimum tax, adds domestic application

December 22, 2021

The European Commission on December 22 released its proposed directive to implement within the EU the global minimum tax under Pillar 2 of the OECD agreement reached between 137 countries in October; the directive largely tracks the OECD agreement, while adding . . .

Europe

EU shell company directive aims to crack down on tax abuse

December 22, 2021

A proposed directive released by the European Commission on December 22 will step up efforts to tackle the use of shell companies to avoid taxes by denying tax benefits for entities deemed to be shell companies and adding new reporting requirements in . . .

Americas

Pandora papers’ two lessons for transforming tax and financial laws

December 22, 2021

Leopoldo Parada, University of Leeds School of Law, discusses the lessons to be learned from the so-called “pandora papers” since their release by the International Consortium of Investigative Journalists (ICIJ) in October, such as the implications for the structuring of tax and financial laws going forward . . .

OECD plans four consultations on tax matters under two-pillar deal

December 21, 2021

The OECD announced on December 21 that it will seek stakeholder input on four elements of the October 8 international tax agreement; two of the consultations will address components of the Pillar 1 profit allocation rules, and the other two will address . . .

Accounting

Ireland consults on adoption of public country-by-country tax reporting

December 21, 2021

The Irish government is seeking input, through a consultation published December 20, on its implementation of the new EU directive requiring public country-by-country reporting of income tax information by certain large . . .

GloBE model rules: a peek into key provisions

December 20, 2021

International tax researchers Noopur Trivedi and Jitesh Golani discuss key highlights of the OECD’s much-awaited global anti-base erosion (GloBE) model rules, released on December 20, along with a commitment by the OECD to finalize the commentary and safe harbors in . . .

Americas

US tax bill stumbles as OECD rolls out global minimum tax rules

December 20, 2021

The path toward US implementation of the internationally agreed global minimum tax hit a roadblock on December 19, as a key US Senator announced he will not support the President’s bill that would adopt the tax changes; the news came just one day before the OECD’s release of . . .

Americas

ATO prevails in Singapore Telecom Australia intercompany financing litigation

December 20, 2021

New York City Economist Dr. J. Harold McClure analyzes Australia’s Federal Court of Appeals ruling on December 17 in favor of the Australian Tax Office in Singapore Telecom Australia Investments Pty Ltd v. Commissioner of Taxation – a transfer pricing case involving intercompany interest payments in . . .

Americas

Canada’s Trudeau outlines corporate and international tax priorities in mandate letter

December 17, 2021

Canadian Prime Minister Justin Trudeau includes various high-level tax policy objectives — such as measures targeting bank income and tax avoidance, as well as research and development (R&D) amendments — in a December 16 mandate letter to . . .

Africa

South Africa proposes model legislation to introduce APA program

December 16, 2021

The South African Revenue Service (SARS) on December 10 published a high-level model and draft legislation for the introduction of an advance pricing agreement (APA) program, and plans to launch a pilot . . .

Europe

Portugal updates transfer pricing guidance on documentation, APAs

December 16, 2021

Cabrini McCarrick, Regan van Rooy, discusses the guidance Portugal issued November 26 on transfer pricing documentation and advanced pricing agreements, providing for additional clarity and certainty regarding . . .

Americas

Canada advances digital services tax bill despite OECD pact, US objections

December 15, 2021

Canada introduced draft legislation on December 14 to implement its planned digital services tax – with a built-in delay and contingency deferring to implementation of the OECD multilateral agreement; however, if the OECD agreement under Pillar 1 is not timely implemented . . .

Denmark

Danish beneficial ownership cases on interest – High Court rules in favor of tax administration

December 15, 2021

Susi Baerentzen, Carlsberg Foundation Postdoctoral Fellow, discusses the November 25 High Court of Eastern Denmark ruling in two of the famous beneficial ownership cases, both of which are on interest; the cases are part of a group of six such cases that the CJEU made world-famous when . . .

Khaled Al Zaabi on Spanish government proposes digital services tax: “We are seeking assistance with Digital Assets and International Tax Consulting to help Abu Dhabi UAE Oil Company navigate the…” October 24 ,2024

Emma Hinson Sims on The Pillar One blueprint — the potential future of international taxation and transfer pricing: “HAPPY BIRTHDAY TO A VERY SMART, BEAUTIFUL, YOUNG LADY ON JANUARY 13TH.” January 6 ,2024

David Valdez on US Tax Court resolves Whirlpool tax dispute involving Mexican maquiladora structure: “Greetings Whirlpool Mexico, I’m trying to contact someone involved with the decision making for transportation from all of your Mexican…” October 20 ,2023

Jose Dominguez on The new US international tax rules: what you need to know about GILTI, FDII, BEAT etc.: “Very informative article. Question. Do you have a software to compute these US International Calcs to make them in house?” April 12 ,2023

Ciro César Soriano de Oliveira on Danish High Court rules on beneficial ownership of dividends for tax purposes: “Dear Ms Susi, This article is immensely clarifying. I’d like to know whether Danish Supreme Court has already granted its…” March 24 ,2023

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